This article was last updated on April 16, 2022
Technically, the markets appear geared toward continuing Friday’s rebound, though fundamentally, there are some pretty good reasons why the bears may be succeed in clamping down on further upside activity.
Stock futures are a touch lower, but well off the lows of the night, which is a signal that the market wishes to build upon last week’s modest Dow and S&P recovery.
While Greece isn’t a big fish economically, it’s the threat of contagion that scares the markets. In that vein, it’s a good idea to keep an eye on spreads in Spain and Portugal this week for clues about contagion.
As of now, the CDS picture is ugly. Sovereign benchmark periphery: Greece 2025bp (+128), Spain 298bp (+10), Portugal 796bp (+14), Italy 182bp (+11), Ireland 785bp (+15).
Quick Crude Comment
I have a new t.v. show idea: Newsletter Writers Say the Darndest Things. We could resurrect Art Linkletter for this. After that failed OPEC meeting a few weeks back, I threw in the towel on $85 per barrel crude. No sooner had I don’t that, the price of crude began to unravel on economic softening concerns. Crude got to a $91 handle last night. It actually appears as if the next stop for crude will end up being into the 80’s. $85 looks more possible in the coming days, after all.
I will be posting an update to the short and long candidates list. I was early on Apple, but wow, now it;s down to 315, Will be updating this stuff.